Market Trends of Latin America Flexible Packaging Industry
Pouches are Expected to Grow Significantly
- Pouches can be broadly classified into stand-up and flat pouches and are extensively used across Europe. Stand-up pouches include various types of retort pouches, bottom gusset pouches, flat bottom pouches, side gusset pouches, spouted pouches, and shaped pouches. Flat pouches can be further classified into pillow pouches, four side seal pouches, three side seal pouches, and vacuum pouches.
- The durability and convenience of logistics for products packaged in pouches drive the studied market's demand. The pouches' cost-effectiveness is helping manufacturers opt for pouch packaging, driving the growth of this flexible packaging format. The lightweight nature of the structure drives the adoption of pouches compared to other traditional packaging formats like PET bottles.
- There is also an extensive demand for kraft paper in wrapping, pouches, and sacks. The increasing trend for eco-friendly packaging is creating a demand for kraft papers that can be easily recycled, as their pulping process allows easy waste recovery.Similarly, in 2020, TC transcontinental, Montreal-based packaging manufacturer, with a presence in the United States and Latin America, announced plans on increasing post-consumer, recycled content in flexible packaging offerings such as pouches. It has also begun investments in allied equipment to convert flexible plastics from sorting facilities and other sources.
- In May 2021, Amcor introduced recycled plastic packaging for powdered chocolate in Latin America, a more sustainable packaging than the previous packaging. This new solution reduces the package's carbon footprint by 53% and water consumption by 84% when recycled. The new sachet has a high-barrier feature to protect against humidity and will be available to consumers in Colombia's 25g sachet format this month.
- Pouches are one of the most significantly used materials for packaging e-commerce products. Pouches are becoming the most common format of flexible packaging in the food, beverage, personal care, and pharmaceutical industries that cater to most products in the e-commerce markets. Players operating in the e-commerce sector opt for pouch packaging, as it is one of the most efficient and economical packaging solutions.
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Brazil is Expected to Hold Significant Market Share
- Brazil is one of the leading countries in Latin America in terms of economic growth and high FDI. It has a huge demand for food and industrial goods, which are catered by imports. Flexible packaging will be necessary for this area to protect the products from getting damaged. With the middle-income class percentage increasing, demand for packed food is likely to increase, enabling the flexible packaging market to grow.
- Despite the pandemic and related uncertainties, the Brazilian personal hygiene, perfume, and cosmetics sector closed in 2020 with a 5.8% growth, according to the index of the Brazilian Association of the personal hygiene, perfumery, and cosmetics industry (ABIHPEC). The personal care category revenue reached USD 12.77 billion (approximately), and it was further expected to grow by 7.5% in 2021.
- In 2020, Brazilian converter of flexible packaging Pamplastic Industria de Embalagens Plásticas increased its business by purchasing a Comexi F2 MB flexographic press. The company currently serves the monolayer packaging market, including technical films, bakery packaging, line refrigeration, and textile packaging.
- In October 2021, Gualapack SpA was expanding in Brazil as part of the group's ongoing efforts to achieve sustainable, worldwide growth through vertical integration. With the acquisition of Teruel Embalagens - Papeis Amalia Ltda, Gualapack continues to make significant investments in this part of the world. Teruel is a classic family firm with 50 years of experience, having two plants in Brazil specializing in flexographic printing on flexible film.
- There is a trend supporting premiumization in this market. Despite being price-sensitive, Brazilians are willing to spend on cosmetics. This caters to the demand for flexible packaging, as flexible plastic materials, such as polyamine and polypropylene, provide packages with outstanding visibility and appealing structure, along with safety features.
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